Pool of The Week

Question in detail:

Since the start of November, the Osmosis Support Labs team has run the Pool of the Week program, highlighting important and/or new pools within the ecosystem. What kind of impact has this program had on the liquidity of these pools?

Track LP volume in and out of these pools based on the following dates:

11/11/22 Pool 833 - stOSMO / OSMO
11/15/22 Pool 837 - IST / OSMO
11/22/22 Pool 840 - BNB / OSMO
11/29/22 Pool 634 - wETH.grv / OSMO

Overview of analysis:

This dashboard divided into the following parts:

The comparison of Headfirst and Singleside action
Detailed analysis of Headfirst
Detailed analysis of Singleside action

Osmosis chain and LP provide:

Osmosis is an advanced Automated Marketer Protocol (AMM) that allows developers to build custom AMMs with robust liquidity pools. Osmosis is built using the Cosmos SDK and uses the Inter-Blockchain Communication (IBC) feature to enable cross-chain transactions. The Cosmos ecosystem follows the "Blockchain as Decentralized Program" architecture; This means that Osmosis is a blockchain connected to cosmos Hub, which is also a decentralized exchange.

Osmosis, with the help of IBC, connects to the entire ecosystem of Cosmos chains and their more than 10 billion dollars of native assets. After supporting active blockchains on the Cosmos hub, the project aims to connect to other chains such as Ethereum and Bitcoin.

Liquidity pool provides a new standard for efficient trading of assets and at the same time allows investors to earn profit from their assets. DeFi (DeFi) liquidity pools are very popular nowadays and many people are thinking of joining these pools. A liquidity pool is actually an automated market maker (AMM) that automatically connects buy and sell orders based on predetermined parameters using a smart contract. Here it is not necessary to connect traders directly with other traders and liquidity will be available as long as investors have entered their assets into the pool.

Part 1: 11/11/22 Pool 833 - stOSMO / OSMO

Part 2: 11/15/22 Pool 837 - IST / OSMO

Part 3: 11/22/22 Pool 840 - BNB / OSMO

Part 4: 11/29/22 Pool 634 - wETH.grv / OSMO

Findings:

Conclusion:

Now based on the consequences of the previous parts, the final conclusion has been drawn as below:

The popular LP action among users is Headfirst and this kind of action has superior from each investigated metrics.
As expected, the OSMO token and pool #1 have dominated to process of adding liquidity to Osmosis pools.
After Terra collapse on May 2022, the tendency to adding liquidity to Osmosis pools has been decreased accordingly.

Useful links:

Author:

Credited by MZG

Discord handle: m.zamani#0361

Twitter handle: @GargariZamani

Methodology:

The data provided by Flipside has been used to handle this analysis. To handle this investigation the following steps have been passed as below:

Step 1: The identification of various LP actions
- Table→ osmosis.core.fact_liquidity_provider_actions
- Metrics→ Find out transactions for ACTION='pool_joined'
Step 2: Compare two type of LP actions
- Metrics→ Count of action, distinct users, USD volume of actions, Average LP action per user and day, Average volume of action per user and day
Step 3: Detail analysis of various LP actions
- Metrics→ Top pools, currencies responsible for actions and previous metrics of Step 2
Step 4: By aggregating the outcomes of the steps and deep dive into the two type of LP actions, draw a conclusion about how users interacted with liquidity pools.

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Pool of The Week